Merkel does not rule out Greek debt forgiveness after 2014

BERLIN -- Germany's chancellor is not ruling out the possibility of forgiving Greece some of its debt once the country's finances are in order.

Angela Merkel told German Sunday tabloid Bild am Sonntag that the question of debt forgiveness, or a so-called haircut, can be revisited from 2014 onward.

Merkel's government previously ruled out forgiving debt, arguing that Greece must implement austerity measures and structural reforms in return for its bailout loans. But the International Monetary Fund and many economists say eurozone nations must forgive Greece some of its debt to achieve a sustainable solution.

When asked about a Greek haircut, Merkel told the newspaper "when Greece one day again manages with its revenue, without taking on new debt, then we have to look anew at the situation and reevaluate.''